The Government must improve infrastructure in major towns and cities in order to address the high cost of housing and property rentals in Papua New Guinea.
PNG National Research Institute (PNGNRI) reports that the high cost of housing is a result of the lack of basic infrastructure and regular maintenance of existing infrastructure.
Location is one of the main drivers of property prices, which are influenced by the availability of infrastructure such as transport, water, sewage, schools, shops and medical centres.
PNGNRI researcher for the property development research program, Professor Eugene Ezebilo, explained that these basic services and regular maintenance of infrastructure are lacking in most areas.
Ezebilo said most private sectors would like to invest in housing however, access to basic services is a problem.
“If the Government pushes towards providing infrastructure in major areas in PNG, especially in the cities, then that will also attract private investment.
“Given the high cost of providing basic infrastructure, the private sector is more likely to shy away from investing in residential property development,” Ezebilo said.
He added that in order to motivate and provide private property developers with incentives to build more houses, the Government should take full responsibilities for the development and operational costs of service and infrastructure.